All Forum Posts by: Brock Mogensen

Good call seeking an experienced attorney for this.

There is a pretty big difference between a syndication and a fund.

Generally you see people start with syndications then move to a fund model..that is what we are doing.

That being said, really comes down to what your investor pool and deal flow looks like.

Happy to provide further insight on my experience with the syndication model (have done 13 of them) vs fund. Feel free to shoot me a dm.

@Shawn Krieger thanks for the tag!

Sam - you definitely don't want to just use a generic contract for this. As it will be more custom to the specific structure you're looking to do.

I will send you a DM to connect further on this.

Syndication or a creative Joint Venture structure is likely what you're looking to do.

This is where you (as the General Partner) do all the work - find the deal, get the financing, manage the property. Then your "investors" (Limited Partners) put up the money. They are not involved in the ongoing work of the property, 100% passive.

In return, you as the General Partner take fees and equity upside (promote) for doing all the work.

There are tons of ways you can structure syndication deals, and I recommend really understanding the underwriting side before putting one of these deals together. 

Legal docs are of course important to review..generally a syndicator is not going to change any language in the docs if you're attorney has requested changes.

More importantly, I think you want to review the Offering Memorandum in depth. The business plan and underwriting especially.

How conservative are they being on the value-add strategy, exit cap rates, debt assumptions?

Additionally, reviewing the track record of the GP team. Have they had exits before? How is their current portfolio performing?

 We have a focus on value-add industrial deals in the Milwaukee area

 Closed one last week. On the search for the next one

Referrals to credible syndicators with a proven track record. Tons of great firms here on BP.

However, I would start with defining what sort of deals you want to invest in. Asset class? Location? Value-add? 

Then get on a call with 5-10 syndication groups, review their deals, invest with the one you like the best/has the best deal.

In what market?

Very good criteria set here. I think syndicators who have shown a track record is key heading into unknown economic environments. Conservative underwriting from a proforma and debt perspective is also critical.

Raising money and finding good deals is certainly a challenge right now.  But with a strong GP team and the grind to find good deal, syndication deals still make sense.